Trump's 'Liberation Day' Creates 'Major Uncertainty' For Big Tech, Analyst Dan Ives Says

Shares of big tech companies, especially the Magnificent Seven, have dropped over the past six weeks as President Donald Trump's tariff agenda drove a wave of uncertainty through the market.

Wedbush analyst Dan Ives pointed to two major concerns for tech investors ahead of Trump's "Liberation Day" tariff announcements expected Wednesday.

Expert Ideas: Ives said the two biggest concerns for tech investors are a possible slowdown in AI spending amid the economic uncertainty and Beijing's potential retaliation to Trump's tariffs.

AI Spending Slowdown: Trump's tariff rollout threatens to inject caution into corporate spending, potentially delaying AI projects as businesses grapple with higher costs and economic uncertainty.

"In covering tech stocks and markets the last 25 years, we have seen some ‘fork in the road’ political moments that have created major uncertainty for the markets….and this Trump tariff announcement is up at the top of that list," Ives wrote.

While AI adoption and investment remain robust, the near-term growth trajectory could stall if tariffs dampen demand and squeeze margins.

The Wedbush analyst also noted tariffs are ultimately paid for by consumers and decreased consumer confidence and spending could weigh further on companies like Tesla, Inc. TSLA and Apple, Inc. AAPL.

China: Beijing's response to the tariffs is another wildcard for tech stocks, especially semiconductor supply chains which are "cemented" in Asia, Ives said.

Retaliatory measures could disrupt production of critical components of NVIDIA Corp. NVDA chips and accelerate China's push for self-reliance.

Relocating even a fraction of Asia's semiconductor infrastructure to the U.S. would take years and cost hundreds of billions, leaving tech exposed to prolonged volatility.

"It would take three-four years to move even 10% of the supply chain from Asia to the U.S. in our view and cost hundreds of billions along with major supply chain delays and challenges in between," Ives warned.

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